The company reported profit of $27.8 million, or 36 cents per share, for the quarter, down 22 percent from $35.5 million, or 47 cents per share, in 2008's second quarter.

Olin, based in St. Louis, said it spent $800,000 during the quarter to convert hourly workers at McIntosh from a traditional pension plan to one where the company puts in a defined amount of money.

Profit from the company's chlor alkali chemical division, including McIntosh, was down 32 percent to $47.6 million. Sales for the unit fell 22 percent to $242.4 million. The company said the division, which makes chlorine, caustic soda and bleach, operated at only 70 percent capacity because of low demand.

Olin warned that caustic soda prices have fallen sharply and the division is likely to lose money in the third quarter. "During the second quarter, the chlor alkali business, and more specifically, the caustic soda business, began to catch up to the overall economy," said Chairman and Chief Executive Joseph Rupp.

He said customers including pulp and paper mills are delaying caustic soda orders in anticipation of even lower prices.